Monthly Archives: November 2007

November 7, 2007 · 9:46 am

Securing A Retirement Worth Having

Securing a retirement worth having takes forethought, perseverance and planning. Exactly what a couple I’m working with right now has.

You see, they have a sweet equity position in their current principal residence. Now they could go out an buy a bigger home. One with another garage, an extra bedroom for that once a year visitor (wouldn’t a hotel room be cheaper?) or the back yard that would blow all their friends away.

Or they could take money out and go on that vacation that would make you drool. Or how about driving a car that will turn heads?

No, this couple decided to do something rather boring. They decided to get rich slowly. They decided to plan for a retirement worth having by investing in real estate. Not the kind of real estate investing that you see on HGTV. Not the kind of real estate investing that is helping to bring down the sub-prime mortgage market.

The boring kind of real estate investing. The kind where you buy a house or duplex and you rent it out. Then reap the Four Benefits of investing in real estate. What were the Four Benefits, again?

Cash Flow Before Taxes
Principal Reduction
Depreciation
Appreciation

Want to know how these numbers work together in concert? Just email me and I’ll send you a sample analysis. You can judge for yourself.

1 Comment

Filed under 4 Benefits of Real Estate Investing, Retirement Worth Having

November 6, 2007 · 10:36 am

Los Angeles Here I Come

The University of Kansas Jayhawk basketball team plays the Trojans of USC on December 2nd. So mixing business with pleasure, I will be visiting the lovely city of Los Angeles from November 30th to December 4th. I have to come out to watch my Jayhawks put the beat down on OJ Mayo and his Trojans. (Or so I hope!)

Anyway, after speaking with a couple of my Los Angeles clients it looks like I’ll be getting together with them and a few of their friends (thanks Jeff Brown) to discuss real estate investing in Kansas City.

I would love to meet you to. We can get together for a coffee or something and just meet so that you can see I’m not the Boogie Man or the guy from Glengarry Glen Ross.

Again, if you have even a passing interest in moving some of your real estate investment portfolio from the Los Angeles area to the Kansas City area, just give me a call at 913.568.1579 or drop me an email. I’d love to hear from you.

Why Are All Register Recipts Two Feet Long?

What I want to know is how much of our national forest is being devastated so that each and every purchase in America can take place with the customer receiving, in return for their hard earned money, both merchandise and a two to three feet of register receipt?

Seriously, this is getting ridiculous. I pay for everything with my Visa card that subtracts immediately from my checking account. So I have to keep the receipts. Easier said than done when you stop at the local CVS for a pack of gum, deodorant and razors that cost $11.27 with tax and then you are presented with 18″ of coupons, advertisements, who the manager is, etc.

Pardon me, but where the hell is the amount I paid? Can’t I just get that?

I’ve taken to ripping off the top 3″-5″ with the important stuff like the amount paid and the date and company and just leaving the rest with the register person who ALWAYS looks at me dumbfounded.

Now, I realize this has nothing to do with real estate investing. But I’m telling you I’m not the only one that has noticed this disturbing trend that I am sure is going to bring down Western Civilization.

Sorry for the rant. But I do feel better. 🙂

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Filed under Uncategorized

November 5, 2007 · 8:14 am

Thoughts About KC Real Estate Investing

Miscellaneous ramblings about the Kansas City real estate investing market…

– I spoke the other day about a real treat I had found from an investor. I put the word out to my real estate investors and they responded in far greater numbers than I could satisfy. Why?

The properties were 3 duplexes in a 55+ community. Both sides rented at $1,075 on 4 of the 6 units, $975/side for the other duplex. Asking price was $220,000 and HOA took care of all exterior maintenance for $100/mo. per building. Oh, did I mention they were located in one of the fastest growing suburbs in Kansas City?

Now here’s the good news. The seller of those properties have given me a tip on another builder also looking to get out of his construction loans. He too has had to rent out his new construction homes to help keep from going under. So I’m entering negotiations today to see where those will head.

I’ve been predicting good things for this winter for the Kansas City real estate investor. Looks like it’s going to happen. (But don’t get too excited. Every year I predict the Jayhawks will win the NCAA tourney, too.)

– Where is fall? Seriously, I had to take my sweatshirt off at my son’s football game on Saturday because I was hot. Enough already. Jeez. Some of the trees still have green leaves.

– I know of a Waldo home that is 3 bedroom and 2 full baths that just rented for $1,150/mo. I have a 3 bedroom 1.5 bath home in Waldo for rent at $965/mo. that is generating some traffic. The rental market remains very strong in Waldo. And for that matter, throughout much of Kansas City.

– Congratulations to the Jayhawk football team. They are in rarefied air at #4 in the BCS standings. Unbelievable. I’m still peeing my pants from hanging 76 on Nebraska. Sure I know Nebraska isn’t up to their usual standards. But they are still Nebraska. Those kids were recruited over the kids Mangino has. And they’ve hung 60+ points a game on us for decades!

– This Saturday I’ll be teaching at UMKC’s Communiversity a class on real estate investing. As I understand it the class is about 75% full. I’d love to see you there. We’ll talk about real estate investing in general. But specifically we’ll talk about getting rich slowly to build a retirement worth having.

Come on out. It’s about real life real estate investing for real people.

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Filed under Real Estate Investing

November 2, 2007 · 8:34 am

Myths of the Real Estate Investing REALTOR

Here are a few myths that need to be dispelled about my abilities. I’m doing the best I can. But I’m only human. This just happens to be my full time profession. Well, that and rasing four kids!

I cannot tell the future any better than you can when it comes appreciation, foreclosures, etc. (I can use market data to tell you historical trends.)
When negotiating I cannot tell you the exact thought process of the opposing party. (I can give you best “guesses” based on experience, suspected motivation and deduction.)
I cannot control the behavior of the opposing party or their REALTOR advocate. (I can be a buffer between you and them and give sound, reasonable arguments as to why you are making the offer or counter offer you are making.)
I cannot find income houses that fit your criteria if your criteria is not realistic. (No, there are no brand new duplexes selling for $150,000 here in Kansas City that have 100% occupancy and rent for $900 a side. At least not that I’m aware of.)
I cannot control the market. (I realize you want $300,000 for your property. I get that. But the market says it’s worth $250,000. I’m not saying that, the market is.)

Of course, I could go on. Here’s the deal, if you are an experience real estate investor here in the Kansas City market you may have a lot of the same opinions on property that I do. We may even come to a lot of the same conclusions. But wouldn’t you be wise before making any sizable investment purchase to compare notes and have a neutral set of eyes looking at your potential deal.

And if you are brand new at real estate investing, even if it’s new to investing in the Kansas City market, you really do need the expertise of a REALTOR advocate. One that knows the Kansas City market. One that knows real estate investing.

Kansas Basketball

I realize that many of you simply do not care. You want to read about real estate investing. Well, wait till the next post!!!

Last night I took my dad who was in town visiting from Charlotte, NC to the KU Jayhawks basketball game over in Allen Field House. He had never been to AFH and by all accounts, he had a great time. The Jayhawks rolled to a rather yawn inspiring 94-59 victory. But what do you expect from an exhibition game? Still the crowd was out in full force (how many places in America can they say that?) and the students were, as usual, a riot.

If you ever get the chance to see a game in Allen Field House you should do so. For that matter, Gallagher-Iba Arena in Stillwater, OK is fantastic, too.